PROMPT SUCCESS

Hokitika Guardian, 13 October 1932, Page 5

PROMPT SUCCESS

TREASURY OFFER BRITISH LOAN CONVERSIONS. (British Official Wifeless.) RUGBY, October 11. The offer of £150,060,600 at 2 per cent. Treasury bonds, 1935-38, at par, met 1 with prompt success to-day, and the 'date for cash application closed immediately. ht<>Success had been expected i for l the ■ issue of £150,000,000 of 2 per cent. 'Treasury bonds, 1935-38, but the closing of the lists almost immediately after they had been opened this morning, had a stimulating effect on British gilt-edged securities generally, i There were sharp rises among these. Although the fluctuation caused by the natural sequel of profit taking occurred during a busy day, at the close the gains in British funds in general' ranged from 3-8 to 13 with war loan assented finishing well under the best at 101 7-8. The cash applications for the new bonds reached a very big figure, despite the fact that the 2 per cent, rate was tho lowest offered on a British Government security within memory of the city. The announcement of the new conversion issue caused a sharp rise in British War Loan Assented, opening at 101 J, and later rising to 102|. The market interprets the new issue 'to mean that in the official view, money is likely to remain cheap for some time to come. While cash applications were invited, the issue really represents a conversion operation, preference being given t ; o applications from holders of £140,000,000 of 41- per cent. Treasury bonds due for payment on December 1. Such holders exercising the right of exchange into new 2 per cent, bonds will receive an equal amount of the latter, plus a cash payment, of 10s per cent. It is calculated that so far as the U per cent. Treasury bonds are concerned about £3,7-50,000 will be saved on the national debt. Recent conversions of the 5 per cent, war loan effected a saving of over £30,000,000. For December 1, the Government hi riS provided £165,000,000 for repayment of the unconverted 5 per cent, war loan; £140,000,0QQ for redemption of 4% per cent. Treasury bonds, and £l3 000,000 for the remaining balance of per cent, stock. It is assumed that the Government has plans other than the issue of the.,short term bonds in view, for.: dealing with the balance of approximately,. £IB>B>OpO.OQO, li wh. , (:h / thus remains of this,, total of £318,ccx.coo.